Paterson Contracts

Immediate Delivery Contract

Our Immediate Delivery Contract enables a grower to lock in an attractive market price and take up to 30 days to deliver the contracted crop. The contract is specific to the commodity, quality, tonnage, and price and delivery location along with other terms of the contract. Because the futures price and basis levels are fixed, this type of contract offers predictability and low risk.

Deferred Delivery Contract

Our Deferred Delivery Contract has the advantage of allowing the grower to lock in the price of their grain for delivery in the future. The commodity, price, quality, tonnage, delivery location and delivery period are stated along with other terms of the contract. Growers choose the price, delivery month and payment timing most favourable to them. The prices are based upon market conditions as well as Paterson Grain's sales program in effect for each month.

Basis Contract

A Basis Contract gives the grower an ability to lock in the basis, (discount to the futures market), which is made up of all the costs associated with delivery of the commodity, such as cost of elevation, storage, interest and transportation. By this contract, a grower can obtain a favourable basis level while waiting for the futures market to rise, even after the delivery of the grain. The grower has until the last business day of the month prior to the delivery month to lock in the futures price, or roll to the next futures month. This contract will have all the terms of the deferred delivery contract, except the price has yet to be locked in.

Profit Plus Contract

A Profit Plus Contract provides a minimum price for a specific amount of a specific commodity within a certain delivery period. This allows the grower to be paid the minimum price of the contract at the time of delivery while still having the ability to capture any gains on the futures market - all of this with no downside risk. The cost for this price protection and rally opportunity is deducted from the minimum price. The grower has a specific period in which to capture any gains in the market.

Profit Plus Advance Contract

Our Profit Plus Advance Contract allows the producer to be paid a set amount, such as $5.00/bu, after delivering product to the elevator, and locking in a basis contract (discount to the futures market). Head office will issue payment, and when the grower is ready to price the balance of the contract, the elevator will price the Profit Plus Advance contract and issue a cash ticket.

Target Price Contract

Under the terms of a Target Price Contract, Paterson Grain will lock in the specified grain on an Immediate Delivery Contract at the "target price" if the market is reached within 30 days. This allows the grower to lock in his price without having to watch the market. If the target price is not reached within the 30 days the grower has no commitment to deliver the grain, however the grower may renew at the same target, or a different target, for another 30 days.

For information on any of these contracts, please contact the Paterson Elevator Manager nearest you.